YuTong Investment plans significant share reduction in Red Avenue New Materials

YuTong Investment, a shareholder in Red Avenue New Materials Group Co., Ltd., plans to reduce its stake by up to 13 million shares, representing approximately 2.17% of the company's total share capital. The divestment, driven by the shareholder's own funding requirements, is scheduled to occur over three months, commencing three trading days after the announcement until December 9, 2025.

The planned reduction will be executed through both centralized bidding and block trading. For centralized bidding, the maximum reduction in any 90-day period will not exceed 1% of the company's total shares, while block trading will be capped at 2% within any 90-day period. The share price for these transactions will be determined by market conditions.

As of the announcement date, YuTong Investment holds 23,894,623 shares, which constitutes 3.99% of Red Avenue New Materials Group's total share capital. The shares to be divested were acquired both before the IPO and through centralized bidding. The company reiterated that the proposed share reduction adheres to prior commitments, including price and volume restrictions set during the lock-up period.